—(1) On an application by a company under section 78G(1), the Court may, subject to subsection (2), make an order approving the reduction in share capital unconditionally or on such terms and conditions as it thinks fit.

[21/2005]

(2) If, at the time the Court considers the application, there is a qualifying creditor within the meaning of section 78H —

(a)

who is included in the Court’s list of qualifying creditors under that section; and

(b)

whose claim has not been terminated or whose debt has not been discharged,

the Court must not make an order approving the reduction unless satisfied, as respects each qualifying creditor, that —

(i)

he has consented to the reduction;

(ii)

his debt or claim has been secured or he has other adequate safeguards for it; or

(iii)

security or other safeguards are unnecessary in view of the assets the company would have after the reduction.

[21/2005]

(3) Where an order is made under this section approving a company’s reduction in share capital, the company shall (for the reduction to take effect) lodge with the Registrar —

(a)

a copy of the order; and

(b)

a notice containing the reduction information,

within 90 days beginning with the date the order is made, or within such longer period as the Registrar may, on the application of the company and on receiving the prescribed fee, allow.